The planned size of the data center project is over 150 MW, and it will be built on a 33-hectare industrial site. The building complex, which will be built in phases, represents an investment in the billions of euros.
The project will have significant employment impacts in the Lappeenranta economic area during the construction and operation phases. The 2–5 year construction phase will employ hundreds of local construction workers. And when the site is commissioned, it will create permanent jobs in tasks such as maintenance, supervision, security and operations management. In addition to the direct employment impacts, the project will bring tax revenues, demand for local accommodation and food services, and training and research opportunities to the Lappeenranta economic area.
Lappeenranta is one of the data center projects currently being developed by Finland-based Polarnode. The company’s goal is to develop Finland to a hub for successful and sustainable data center business in Europe and to ground the value and benefits created by the industry into the domestic business environment. Mikko Toivanen, Chairman of the Board and co-founder at Polarnode Oy, sees the Lappeenranta project as a great example of Finnish data center market’s strengths.
“There is a straight-forwards grid connection solution, access to the local district heating network and a legally valid zoning plan enabling construction. Our cooperation with the City of Lappeenranta has been very smooth and I firmly believe that the cooperation will continue to be swift and constructive. Overall, the demand for new data centers is a great opportunity for Finland”, Toivanen says.
Tuomo Sallinen, Mayor of Lappeenranta, sees that the project having wide-reaching impacts ad significance.
”The project would have substantial employment impacts both during construction and operation. Based on preliminary estimates, the project would employ a number people during construction alone in the South Karelia region in addition to creating permanent jobs after commissioning. If the project size was 150 MW it would employ approximately more than a hundred professionals in the region”, Sallinen comments.
Polarnode’s founding team comes from renewable energy company Ilmatar
Polarnode’s founders Mikko Toivanen and Kalle Pykälä were among the first to develop Finland into a pioneer in renewable energy 15 years ago as the founders of the renewable energy company Ilmatar. Utilizing this experience forms the backbone of Polarnode.
“We have been preparing for investment, financing and building over a billion euros in investments in wind and solar power in Finland. When we founded Ilmatar in 2011 and started developing wind farms, the entire sector practically didn’t exist in Finland, and experts were brought in from abroad. We were one of the early movers in creating a renewable energy value chain in Finland, and we see significant similarities now with the current situation in the data center industry – we want to be part of accelerating the growth of the industry again. Compared to foreign developers and asset owners who look at Finland from afar, we have concrete and long-term experience in how to optimize the origination, development and construction of large-scale infrastructure projects in the Finnish operating environment and utilizing domestic expertise”, Toivanen comments.
Global data center demand is expected to quadruple by 2030. Growth is driven in particular by artificial intelligence and digitalization.
Finland’s operating environment offers a globally unique competitive advantage for building and operating data centers. Finland has a nearly carbon-free energy system, the potential to build new low-cost renewable energy production, the world’s strongest electricity grid, and a cold climate that enables energy-efficient cooling. Efficient utilization of waste heat from data centers, for example in district heating use, also strengthens Finland’s energy self-sufficiency and supports the green transition. Modern data centers also have the potential to act as a source of grid flexibility, supporting the national electricity system.
Economic policies should be predictable and sector-neutral
Data center investments and their tax treatment has seen active public discussion in Finland during the beginning of 2025. The electricity tax treatment of data centers has been changed several times during the last 10 years and the current public discussion gives indications of yet another potential change.
“For the development of the industry, economic policy should be predictable and industry-neutral. Data centers have not had a special status compared to other industries in terms of electricity tax and this industry neutrality should be maintained. Raising the electricity tax on data centers would be a move in the opposite direction compared to what Finland’s key competitors have done in the recent years”, Toivanen points out.
Despite possible policy changes, Polarnode aims to bring the first projects from its portfolio of over 500 MW to implementation during 2025.
Contact information:
Mikko Toivanen, Chairman of the Board, Polarnode Oy
Puh. 0500 595 471, mikko.toivanen@polarnode.fi
Tuomo Sallinen, Mayor, City of Lappeenranta
Puh. 040 624 1422, tuomo.sallinen@lappeenranta.fi
Information on Polarnode:
Polarnode Oy is a Finnish data center developer. Our vision is to enable the world’s cleanest data centers. We develop, build and maintain data centers for our customers – reliably and sustainably. www.polarnode.fi